Tag: automotive news

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EFG Companies Electric Vehicles

The Infrastructure of Electric Vehicle Sales

Electric vehicles are a hot topic these days – for consumers and automotive dealers alike. However, not all electric vehicles are alike. Like any new product, consumers can be confused and overwhelmed. A dealer’s success in selling any type of electric vehicle requires your staff to be knowledgeable on the product details and trained to guide the customer through the buying decision process.

Electric vehicles on the road today

Battery Electric Vehicles (BEVs)

BEVs—also referred to as “all-electric vehicles”—run on electricity only and are recharged from an external power source. They are propelled by one or more electric motor powered by rechargeable battery packs.

Plug-In Hybrid Electric Vehicles (PHEVs)

PHEVs also use batteries to power an electric motor and can be recharged from an external power source, but they incorporate a smaller internal combustion engine that can recharge the battery (or in some models, directly power the wheels) to allow for longer driving ranges. When electricity is unavailable, PHEVs can run on gasoline alone.

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Industry Trends

2021 – Same But Different

As December 31st rolled around, it felt like everyone was holding their breath, ready to put an extremely difficult year behind them. Then, the realists reminded us that the changing of a date really doesn’t wipe away all the challenges we are currently facing.

The 2021 challenges for the auto industry look much the same as they did in 2020. According to The Conference Board’s economic forecast issued January 13th, several factors will impact the US economy in 2021, including:

  • scale of the ongoing COVID-19 resurgence and any resulting lockdowns;
  • status of labor markets and household consumption;
  • size and timing of additional fiscal stimulus;
  • timing and availability of a COVID-19 vaccine; and,
  • degree to which volatility in the US political transition affects consumer and business confidence.
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Economy Industry Trends

Perspective on the Auto Sales Plateau

Contributing Author: John Stephens Executive Vice President EFG Companies
Contributing Author:
John Stephens
Executive Vice President
EFG Companies

It’s official. Auto sales have plateaued. Dealerships across the U.S. are reporting low sales numbers in comparison to last year. Manufacturers have increased incentives, but no one’s taking the bait. These headlines give reason for pause and contemplation on the future of the retail auto market. But, let’s take a step back for a second.

According to Automotive News, the auto industry sold 17.5 million vehicles last year, representing a seventh straight year of growth. When put in that perspective, a plateau at 17.5 million vehicles doesn’t seem too bad.

Yes, vehicle sales aren’t hitting manufacturer projections, but seriously, how long did they really think sustained growth was going to continue? We’ve been in one of the longest economic expansions in U.S. history; the economy was bound to slow down at one point.

With that perspective in mind, economic indicators continue to be strong.  National unemployment has hit its lowest level since May 2007. We’ve seen strong jobs gains in recent months. According to CNN, wages rose 2.5 percent in the past 12 months, and the median price of a home has risen to $236,400. Lastly, consumers are still taking on debt. According to the Federal Reserve, consumer credit rose 4.8% annually in February.

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